FAIR Canada and the Canadian Centre for Elder Law have called on the Canadian investment industry to do more to prepare for and respond to the needs of vulnerable investors, many of whom are seniors.
Included in a package of six recommendations to the Canadian Securities Administrators is one that would require investment firms to make reasonable efforts to get the name and contact information of a trusted contact person for each client who can be reached in cases of suspicion of abuse or diminished mental capacity. Another recommendation provides for a legal “safe harbour” for investment firms and financial advisors who report suspicions of financial abuse or mental incapacity.
“We call on securities regulators, and the investment industry to really engage on these issues. Older Canadians, advocates and the investment industry have told us they all support having a conduct protocol in place which balances investors right to make their own choices, with the reality that investment firms are in a unique position to prevent or stop financial exploitation of vulnerable investors or respond to help those who show signs of diminished mental capacity,” says Marian Passmore, COO and Director of Policy at FAIR Canada, and a co-author of the report.